Yara International SWOT and PESTLE Analysis

Strength

1. Strong brand name in niche market: Fertilizer industry fundamentals are attractive, as long-term population growth seems evitable in every state of nations. In Agri 2018, Yara increased both production and deliveries, and EBITDA increased by 13 %. Second-quarter EBITDA excluding special items was USD 546 million, up from USD 321 million a year earlier, mainly reflecting higher production volumes and nitrogen upgrading margins. It is also expected that the agri-market will see the highest market share of Nitrogen liquid fertilizer within the forecast period due to its properties of providing nutrients which help in improving overall plant health. With its positioning of the products towards greater crop nutrition and improved fertilizer efficiency, Yara has made it through all challenges faced in agri-industry.

2. High sustainability practices in operation: Yara has continuously maintained the habit of sustainable practices towards the future of the world which moving rapidly inching towards climate changes. A $1.1 billion, five-year revolving credit facility recently signed by Yara is expected to help significantly in reducing its carbon dioxide output by linking the interest to be paid to its progress. This is expected to as an incentive to the company to reduce its carbon footprint. The goal of the company is to develop products which help in customer business growth while saving the earth resources. It has made it its mission to feed the world and protect them in a responsible manner.

3. Innovative solutions with a purpose: In line with the farmer-centric strategy, we are developing scalable solutions, such as digital farming tools, that can be applied and customized around the world to all types and sizes of farmers. Bringing an innovative solution to simplify operation has been a key strength of Yara. With an increase in green ammonia production, they have been gliding through innovative solutions in existing and new business areas. Today when the agricultural sector has growth potential but agricultural health providers expertise are limited, Yara has been able to provide with premium products, our agronomic knowledge, our services, and our digital technologies to create sustainable and scalable solutions that respond to our customers’ needs.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

1. Innovation in solutions: Every business strives to expand its expertise and get maximum share in current markets. But, with markets evolving in current scenario companies need to have a futuristic approach towards their goals. A number of companies are coming up with an innovative solution to the same complexities that were handled in conventional methods. Innovation in technology not only simplifies the business operation with high efficiency but also reduces the manpower and cost of production which can be passed on to the consumers. Yara has made efforts to drive innovation and come up with innovations to create new business and revenue streams to become the harbinger towards delivering futuristic crop nutrition company. In 2019 only, it has developed a number of innovative products like the Yara Irix which transforms a phone into a precision center and the atfarm which helps in adding fertilizers with high precision levels. The Yara Connect and Yara Ayra are other such innovative products released by the company.

2. AI and Analytics in practice: Farmers of this era are not just into farming, they have rapidly adapted with the technological insurgence. Farmers have adopted efficient techniques with the help of technology to make smart moves in getting better insights into their products. Yara has always been at the forefront of technological advancements. Starting from N- sensors; a tractor-mounted sensor that analyzes the nutrient level of the field and adjusts the fertilizer settings, to the smart integration of farming methods to the devices using apps. Using these apps Yara has made more connections to the remote villages where their knowledge and technology couldn't have reached. Yara is aware of the ramifications of AI and big data in farming methods. To get the best out of these, Yara and IBM have joined forces to transform the future of farming. These two plans to build the world’s leading digital platform which would provide integrated digital services and instant agronomic advice.

Legal

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Environmental

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